Six Steps to Selecting a Materials Management System

One of the greatest challenges in selecting a materials management
system is the sheer number of solutions available. In an arena where
time is money, because inefficiencies in the materials management may be
costing your company thousands of dollars a day, filtering through the
crowded software market is challenge number one.

The first step is recognizing that all materials
management systems are not created equal. Some are very generic while
others are specifically designed for a market niche. The materials
management software for hazardous materials might be a totally different
suite of tools than the one intended for managing a tool crib.

Each materials management system handles different
manufacturing or material handling processes at a different level of
clarity. Some software packages work best in a discrete processing
environment, while others can handle job lots or mixed-mode
manufacturing.

Still other suites handle retail distribution from
procurement to store and back to warehouse better than their
industrial-minded counterparts can hope to ever fulfill.

Step 2: Define your scope.

For some companies, your materials management system
needs may truly be strictly an inventory management system. For others,
determined to implement a fully-integrated strategic cost management
program, you may need a more robust system that encompassed the entire
supply chain life cycle.

Step 3: Decide your budget.

While it cannot be the only consideration, cost must
calculate into decision making on a materials management system
investment. In the first step, you may have found your choices limited
by your current hardware/software infrastructure. If budget allows, you
may need to consider upgrading the network capabilities.

Likewise, if budget is inflexible, you may need to look
for a suite of tools that can be implemented incrementally. Both SAP
and Oracle have core materials management system offerings with can have
a simple inventory management software implementation as Phase One, and
add more comprehensive functionality over time.

Step 4: Enlist the aid of an expert.

It is critical to have someone on your team that knows
several different materials management systems, ones that are pertinent
to your industry.

Whether that person exists within your organization or
must be hired as a consultant, it is critical that you are not relying
purely on sales representative information to make your implementation
decision.

Before you hire a consultant, have them reveal up-front any relationship they may have with companies they might recommend.

You do not want an affiliate beholden to one company’s
materials management system who is paid for referrals to that company
providing key information for your decision making process, unless you
know that fact up-front.

Step 5: Once you have a short list, contact existing users.

Any reputable materials management system provider
should be glad to refer you to current customers to see the system in
action. While some customers may have proprietary processes that they do
not want outsiders to see, a certain percentage should be available for
your implementation team to visit and examine in the workplace.

Step 6: Ensure the fielding plan includes complete training.

No matter how powerful your materials management system
is, failing to include the human component in the fielding is a common
error. There are costs involved both in training and in failure to train
the users. Ensure there is pre-launch, initial launch and follow-up
training provided as part of the system implementation.

By following these six steps, you can ensure your
business employs the right process to finding and fielding the right
software support for your materials management system. Each is
important; short cuts that seem to save time and money are generally
costly in the end.